Penske Media sues Google over AI summaries

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1. https://www.zoomit.ir/business/448015-google-faces-first-ai-overviews-lawsuit/ – Please view link – unable to able to access data
2. https://www.reuters.com/sustainability/boards-policy-regulation/rolling-stone-billboard-owner-penske-sues-google-over-ai-overviews-2025-09-14/ – Penske Media, owner of Rolling Stone, Billboard, and Variety, has filed a lawsuit against Google in federal court in Washington, D.C., accusing the tech giant of using its journalism without permission in AI-generated summaries called ‘AI Overviews.’ This is the first lawsuit of its kind by a major U.S. publisher concerning Google’s AI features. Penske alleges that Google’s dominance in search—holding about 90% of the U.S. market—forces publishers to choose between being included in search results or having their content used in summaries without compensation. The media company claims this practice has led to significant declines in site traffic and affiliate revenue—down over a third since peak 2024. Google responded by defending its AI Overviews, stating they improve the user search experience and help content discovery. Meanwhile, concerns continue among publishers and trade groups like the News/Media Alliance about Google’s refusal to offer AI content licensing deals, unlike OpenAI, which has signed agreements with several major media outlets.
3. https://www.axios.com/2025/09/14/penske-media-sues-google-ai – Penske Media Corporation (PMC) has filed a lawsuit against Google, alleging that the company is unlawfully using its journalism content to generate AI-powered summaries, thereby reducing web traffic to its media sites. This lawsuit, filed in federal district court in Washington, D.C., represents the first antitrust legal challenge from a major U.S. publisher specifically targeting Google’s AI search summaries. PMC, which owns titles such as The Hollywood Reporter, Rolling Stone, and Billboard, claims these AI summaries harm their business by presenting key content without requiring users to visit the original site. Google defends its AI overview feature, stating it improves user experience and drives traffic to a broader range of sources. This legal battle could set a precedent for how content is used and monetized in the AI era, especially under growing concerns from publishers about the phenomenon they call ‘Google Zero’—when AI answers reduce the need for users to click through to original articles.
4. https://www.reuters.com/legal/litigation/googles-ai-overviews-hit-by-eu-antitrust-complaint-independent-publishers-2025-07-04/ – A group of independent publishers has filed an antitrust complaint with the European Commission against Google’s AI Overviews, alleging market abuse. The complaint, submitted by the Independent Publishers Alliance and supported by groups like the Movement for an Open Web and Foxglove Legal, claims Google’s AI-generated summaries, which appear at the top of search results, harm publishers by diverting traffic and revenue. These summaries are created using publisher content without offering an opt-out option without penalizing visibility on search results. The groups argue this practice threatens independent journalism and have requested an interim measure to prevent further harm. Google defends the AI Overviews feature, claiming it drives billions of daily clicks and new opportunities for content discovery, and claims that traffic fluctuations depend on various factors, including seasonal demand and algorithm updates. The UK’s Competition and Markets Authority is also reviewing the complaint, which parallels a U.S. lawsuit alleging similar damage to publishers. The case highlights growing concern over Google’s integration of AI in search and its impact on news media and content rights.
5. https://www.ft.com/content/a5cf261b-0158-443f-8504-7a6b2264ea5d – Chegg is suing Google parent Alphabet, accusing its AI summary tool of diverting user traffic, which harms Chegg’s revenues. The lawsuit claims Google’s AI Overviews retain traffic on Google, negatively affecting Chegg’s user acquisition and revenue. This impact has prompted Chegg to consider various strategic alternatives, including a potential sale. Google refutes the claims, insisting that AI Overviews drive traffic to diverse websites. The rise of generative AI, such as OpenAI’s ChatGPT, has disrupted the demand for paid edtech services, contributing to a significant decline in Chegg’s stock value and revenues. As a result, Chegg’s stock has dropped by 22% pre-market and over 80% in the past year. The decline in investment in online education has seen a notable decrease, with edtech businesses receiving just $3 billion in 2024 compared to $17.3 billion in 2021. Chegg experienced a sharp decline in net revenues and subscriber numbers in the last quarter of 2024, marking a broader trend in the struggling edtech industry.
6. https://www.reuters.com/business/google-cloud-anticipates-least-58-billion-revenue-boost-over-next-two-years-2025-09-09/ – Google Cloud, a division of Alphabet, is projecting a $58 billion revenue boost over the next two years, driven by strong growth in its sales backlog and customer base. At the July earnings report, Google Cloud reported surpassing a $50 billion annual revenue run rate. According to unit chief Thomas Kurian, about 55% of its $106 billion sales backlog is expected to convert into revenue within two years, not including expected new contracts or customers. The cloud unit experienced a 28% increase in new customers quarter-over-quarter. Prominent AI labs, including competitors like OpenAI and Anthropic, are now among Google Cloud’s clients. Despite contributing just 14% of Alphabet’s total revenue last quarter, cloud computing remains one of its fastest-growing sectors. As the tech industry focuses on proving AI investments are financially justified, Google Cloud has positioned itself advantageously. Amid regulatory pressures on Google’s core search business in the U.S. and Europe, Alphabet is pivoting significant attention to cloud services. This shift is reflected in Alphabet CEO Sundar Pichai’s decision to raise 2025 capital expenditure plans to $85 billion, largely due to cloud demand.
7. https://www.techradar.com/ai-platforms-assistants/gemini/google-may-soon-switch-to-ai-mode-for-search-and-youll-just-have-to-deal-with-it – Google is reportedly preparing to make ‘AI Mode’ the default option in its search engine, hinting at a major shift from traditional search result listings to AI-powered conversational responses. This new mode integrates Google’s Gemini AI with live search data to provide direct answers, reducing the need for users to click on external links. AI Mode already has a dedicated homepage at google.com/ai and has seen widespread adoption with millions of monthly active users. While Google VP Robby Stein has downplayed concerns, stating that AI Mode is being made easier to access for interested users, the growing emphasis suggests a broader rollout may be imminent. Such a default switch could significantly impact how users interact with online content and how websites receive traffic, as AI Overviews have already been linked to traffic declines for publishers. This evolution could reshape how information is disseminated online and challenge the traditional visibility-dependent ecosystem of web content. While classic search remains available for now, Google’s ongoing investment in AI technologies suggests that AI Mode may soon become the new standard for internet searching.